Business Reporter
Retailers in Zimbabwe are urging Finance Minister Mthuli Ncube to remove the Value Added Tax (VAT) on rice imports, citing a Cabinet decision made in March 2024 to zero-rate VAT on rice and potato seeds.
The Confederation of Zimbabwe Retailers (CZR) president, Dr. Denford Mutashu, expressed concerns that the delay in implementing this decision has severely impacted retailers, making it difficult for them to compete with smuggled rice imports from South Africa.
Smuggling has led to a decline in legitimate rice volumes in the market and may result in long-term negative consequences for the fiscus, including losses across various tax heads.
Rice is considered a staple food and is zero-rated in Southern Africa and many countries worldwide.
The current high retail prices are straining household budgets, exacerbated by the ongoing drought and limited grain availability.
Key Concerns:
- Smuggling Impact: Smuggled rice imports affecting legitimate retailers
- Tax Consequences: Potential losses across various tax heads due to smuggling
- Household Burden: High retail prices straining household budgets
- Global Precedent: Rice is zero-rated in Southern Africa and many countries worldwide.
The CZR requests Minister Ncube’s urgent intervention to implement zero-rating VAT on rice, aligning with the Cabinet’s approval.
Zim GBC News©2024